Wall Street strategists have become most bearish on equities since the beginning of time1 August, 2012, 19:09. Posted by Zarathustra
Last month, we mentioned that Wall Street sell-side strategist have become most bearish in 15 years?
Despite being known for permanently too bullish, sell-side strategists have indeed become very bearish compared to the history.
Now the record has been broken.
The latest reading of Bank of America Merill Lynch’s Sell Side Consensus indicator is now at the lowest point
since the beginning of time in the indicator’s entire 27 years history.
According to the team at BofA/ML, this has been a rather reliable contrarian indicator:
The Sell Side Indicator is based on the average recommended equity allocation of Wall Street strategists as of the last business day of each month. We have found that Wall Street’s consensus equity allocation has historically been a reliable contrary indicator. In other words, it has historically been a bullish signal when Wall Street was extremely bearish, and vice versa.
Source: Bank of America Merrill Lynch